What KiwiSaver Actually Needs to Change, According to an Adviser

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Making Cents 18 min 2 speakers 6 chapters transcribed 11 days ago
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How can splitting your KiwiSaver across multiple funds protect your money?

Frances Cook 0:00
Five minutes could be enough to have hundreds of thousands of dollars more in your Kiwi Saber. I'm not exaggerating. I've done it before myself and I've seen so many other people get similar results. There are simple changes, low-hanging fruit that can mean so much more money landing in your account. Here's the thing though, these simple changes cut both ways. There are bear traps to avoid because they cost you big time. And then places where changing just a couple of settings can make you a lot.
Katie Wesney 0:33
There is a little bit more flexibility than you think within KiwiSaver.
Frances Cook 0:37
Well, you send in your KiwiSaver questions and Katie Wesley from Enable Me is so ready to answer them for you.
Katie Wesney 0:44
There's so much information out there at the moment and it can be really overwhelming and it can stop people from taking action.
Frances Cook 0:51
So welcome to Ask the Experts, the part of making sense where people from inside the money world are ready to answer your questions and give you that inside word on what's working right now. Making Sense has partnered up with Enable Me to get you the strategies for reaching financial freedom faster. Head to their website to learn more. Visit enable.me today. I want to help as many people as possible build a better life for themselves by understanding and taking control of their money. You can be part of how that happens. First, make sure you're subscribed wherever you like to listen, whether it's YouTube, Apple Podcasts, and the other. And then Send your favorite episode to a mate. Then we can all level up with money together, the show grows, and I can keep bringing you the money info that actually moves the dial.
Frances Cook 1:39
Hey Katie, welcome in again. Look, we had a Kiwi Saber episode that popped off and then I got sent a bunch more questions and I thought, right, great questions, love these. I know the exact person who can handle all of these. So welcome in. I have so many to fire your way.
Katie Wesney 1:56
Can't wait. It was a great episode as well. I thought Susan was fantastic.
Frances Cook 2:00
I know, I love having Susan in. Uh how lucky am I to have all these wonderful smart women? Okay, so number one, people want to know if there is something that a lot of people do with their Kiwi Saber that they get wrong. Is there an easy, quick fix that a lot of us are missing?
Katie Wesney 2:17
There is a little bit more flexibility than you think within Kiwi Saver. So a lot of providers, you have the ability to be across multiple funds as well, which again, not all or nothing. I think that's really useful to know. And particularly when your money has different timelines that you need it to do different things, it can be like super useful to know. And think of an example if you are approaching. sixty five and you've got a significant amount in Kiwi Saver, for some of that you might not need to access it for quite some time. So again you can accept more volatility in terms of that fund type. for a portion of that money, you might want to access it, you know, come 65. So you need it to be relatively liquid and not much risk.
Katie Wesney 3:04
So that would be a perfect example of being across multiple funds to really serve you in terms of length of time when you might need to access those funds.
Frances Cook 3:14
Yes, love it. So you can take a little bit more control, be a little bit more hands-on with your KiwiSaver by splitting it.

What three questions should you ask before choosing or switching a KiwiSaver fund?

Frances Cook 3:22
Yeah.
Katie Wesney 3:22
And thinking about well, we don't might need to access it. That can really serve you for those people who are really worried about volatility. It's a way of, yeah, just kind of bridging the gap to accept a little bit more risk, but also protecting themselves and making sure that they are doing what needs to be done with some of it.
Frances Cook 3:41
This is actually something you've really stepped into something there, which I've been thinking about a lot recently. And I talked about a bit in the newsletter, but I want to explore it more with you because we have this quite black and white sometimes. And we're trying to talk about money concepts. We start with quite the black and white version, which is great, makes it simple. But as we get a little bit further into understanding our money, there's a whole bunch of gray that can be fun to play in and give you more control.

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